The turn lower in the gold/silver ratio is potentially telling of investor expectations. Such a trend was seen more sustainably in 2010 and 2008 when asset purchases were announced. Silver outperformance can also be viewed as a healthy backdrop for US equities to remain stable and ultimately push higher. As such, our focus is particularly on this still developing trend for the mint ratio heading into September. Elsewhere, the EUR short covering highlighted over the past few weeks is picking up pace.
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Barclays Capital